What is sustainability? Why d oes it matter?

1. The Business Case for Community Sustainability Panel #1 Don Schjeldahl - Facilitator October 23, 2014 What is sustainability?Why does it matter?

2. It is not uncommon that the mention of “Sustainability" and “Planning“ stir emotions. Today’s objective: Find common language for building a better community. Business is apolitical. They’re just wanting for a way to prosper.

3. The evolution of “business-best-practices” is reflected in the places businesses operate. 1. 2. Change is constant. No organization that stands still prospers. With change comes new opportunities for development that have different needs.

4. Location Selection is a Process of Elimination • Long List Regions • Favorable Region • Short List • Cities/Sites • ONE Winner

5. The New Business Location Paradigm Favors Sustainable Communities

6. The New Corporate Paradigm:Manage Risk and Cost, but Mostly Risk Sustainable Communities Follow a Plan: • Stakeholders understand community strengths, weaknesses are identified and addressed • Stakeholders converge on development strategies that are realistically aligned with community assets and they have the will to change with time • Execution of strategy touches all facets of the community: • Appropriate workforce skills and education / training resources • Modern / well maintained utility and transportation infrastructure • Land use reflects best practices for interconnectivity / resource management / environmental protection • Government effectively and efficiently provides services in support of community development goals

7. Corporations are more likely to succeed in communities that offer a predictable and adaptable operating environment. • What does the community get for it’s efforts? • Ebb and flow of economy favors steady new investment • Local jobs that keep grown children home, stronger families • Healthier life styles, longer life, lower health care costs • Stable / safe neighborhoods • Wealth creation at all levels within the community • Reasonable tax burden, wise use of tax dollars

8. What is the 50 year vision for Tri-Cities? Buick City – Flint, MI Flint Michigan: • Buick / General Motors began operations in 1904 • Flint population peaked in 1970 at 196,000 • 78,000 GM employees in region in 1978 • “Buick City” 400 acres / 10 % of Flint’s land / 5+ million SF, 28,000 employees in 1985

9. What is the 50 year vision for Tri-Cities? • Buick City ceased operations in 1999 after 100 years • Flint population today 92,000

10. “To be competitive in the era of sustainability, economic developers need to pursue highly collaborative, multi-disciplined, and multi-jurisdictional approaches to community readiness.” Business and Community Converge on the Triple-Bottom-Line

11. Gary Spanner - PNNL • PNNL has sustainability mandates as part of your mission. What are these? • I suspect that employees don’t leave their sustainability hat at the office. Yet I know there are challenges in the larger community that may prevent PNNL employees practicing sustainability. What are your thoughts on this? • What have you seen that works well in other communities? How can we bring those practices to the Tri-Cities?

12. Steve Young, Mayor Kennewick • Sustainability brings stability and predictability to markets. How important is that when it comes to managing a city like Kennewick? • A conclusion from the LWV “Sustainable Communities” is that over the next 20 years the greatest challenge to Tri-Cities quality of life will is urban sprawl. There is a strong push now underway to push Kennewick’s development to the south, opening thousands of acres for new development. How do you reconcile the two statements?

13. Matt Mathes – American Society of Landscape Architects • Mid-Columbia Energy Initiative, on its surface, is game changing in terms of fostering development of a modern/next generation energy economy in the region. Sadly, I did not find much evidence of this when doing the strategy study earlier this year. Do I have it right? • In communities across the country landscape architects are the vanguard of change when it comes to sustainable urban design. Tri-Cities seems to me an up-hill battle when it comes to widespread adoption of tried-and-proven concepts for the landscape. Your thoughts? • What Ways to incorporate sustainability into an existing or new site.

14. Diahann Howard – Port of Benton • You have been working in economic development for a long time here in the Tri-Cities. We first met when I was here in 2000. What positive changes have you seen in Richland and Benton Port District during your tenure? Are these things playing out regionally? • Fragmented approach • Given a near certain reduction in Hanford related employment, is there a 50 year vision for Tri-Cities (to avoid the Flint example)? • Sustainability is scalable, from small towns to large metro areas (e.g. greenways, recycling, industry targeting, workforce development). Is it just a matter of educating the community to drive these ideas in the tri-Cities?

15. Panel Questions • Do stakeholders in the Tri-Cities understand LEED and the roll it can play in creating a better community? • What are the costs/benefits of urban sprawl? • Health and fitness – what do we know about land use and community design that encourages healthier living? • What are some benefits of a healthier community? • What is the role of environmental, social, faith based organizations in economic development? • Life Cycle Costing versus ROI is becoming more common in corporate investment decisions. How does this relate to sustainability? • Companies are addressing community sustainability earlier in the decision process – where can we meet our goals.

16. Selected Findings of Tridec Strategy Study • Largely unsupported industry targets • Skills gap – high, low, not much in middle • Income gap – high, low, not much in middle • Industry gap – agriculture and science/engineering – little in the middle • Lack of entrepreneurship • Missing sense of place - No “here” here • Missing elements to make transition • Lackluster “innovation hub” movement • Difficulty attracting talent

17. General Recommendations for Achieving Sustainable Economic Development • Support economic development through dedicated professional staff • Create a Business Advisory Team with eyes and ears on business needs • Establish policies on development standards • Initiate a workable fast-track permitting process • Think globally, act locally – build partnerships to help strengthen the regional economy • Stay close to your state Business Development representative – make them a partner to your success • Manage risks – real and perceived • Maintain an inventory of sites and buildings ready for development • Create a vibrant, attractive downtown that will support a community sense of place • Establish policies on incentives including use of an economic impact model so you know which investment opportunities are worth pursuing • Understand your workforce by documenting commuting patterns and labor costs by skill set • Support quality housing, schools, parks, trails and services • Strive for a business friendly reputation

18. D Effective Investment Attraction is a Team Sport

19. Sustainable Companies Selecting Sustainable Communities Corporate Driver Community Screen • Local resources are purposely aligned to meet specific OI needs • Real estate • Transportation • Permitting • Utility Services • Police and Fire Services • Emergency Planning • Regulation Risk and Crisis Management

20. Sustainable Companies Selecting Sustainable Communities Community Screen Corporate Driver Supply Chain • Community investment in OI supply chain increases the regionally sourced materials. Human Capital • Companies succeed where the workforce is skilled, reliable, productive: • Workers are loyal, adaptable to change • Diversified & harmonious at all levels • Modern, OI focused training resources • Community is active in job retention

21. Sustainable Companies Selecting Sustainable Communities Corporate Driver Community Screen Operational Eco-Efficiency • Community support for a broad array of corporate environmental policies: • Waste stream management • Water resource management • Water use reduction • Energy management best practices • Recycling, reuse programs

22. Sustainable Companies Selecting Sustainable Communities Corporate Driver Community Screen • Sustainable companies are best served by communities with a live/work balace: • Healthy downtown business districts • Land planning that supports community health / attractiveness • Reuse of brownfield properties • Resources devoted to promoting healthy lifestyles • Public transportation Talent Attraction and Retention